Chris Dodd: Economy and Constitution at Risk
In his opening remarks during a hearing on Capitol Hill Tuesday, Senate Banking Committee Chairman Chris Dodd, a Connecticut Democrat, laid out his criticisms of the Treasury Department's plan for the most sweeping financial bailout since the Great Depression.
From Dodd's prepared remarks:
Barely 72 hours ago, Secretary Paulson presented a proposal that he believes is urgently needed to protect our economy. This proposal is stunning and unprecedented in its scope and lack of detail. It would allow him to intervene in the economy by purchasing at least $700 billion of toxic assets. It would allow him to hold on to those assets for years and to pay millions of dollars to handpicked firms to manage those assets. It would do nothing to help even a single family save a home. It would do nothing to stop even a single CEO from dumping billions of dollars of toxic assets on the backs of taxpayers—and walking away with a bonus and a golden parachute. And it would allow him to act with utter and absolute impunity—without review by any agency or court of law. After reading this proposal, I can only conclude that it is not just our economy that is at risk, Mr. Secretary, but our Constitution, as well.
Nevertheless, in our efforts to restore financial security to American families and stability to our markets, this Committee has a responsibility to examine this proposal carefully and in a timely manner.
In my view, any plan to address this crisis must embody three principles. First, American taxpayers must have some assurance that their hard-earned money is being used correctly and responsibly. Second, we must put in place proper oversight so that the executors of this plan are accountable and their actions transparent. Finally, we must address the root cause of this crisis by putting an end to the rising number of foreclosures sweeping across the nation.
In the longer term, it is clear that our current economic circumstances demand that we rethink, reform, and modernize supervision of the financial services industry. Certain basic principles should form the foundation for reform.
We need a leader in the White House who will ensure that regulators are strong cops on the beat and do not turn a blind eye to reckless lending practices.
We need to remove incentives for regulators to compete against each other for bank and thrift "clients" by weakening regulation.
We need to ensure that all institutions that pose a risk to our financial system and taxpayers are carefully and sensibly supervised.
And we need to accept the premise that consumer protection and economic growth are not in conflict, but inextricably linked. If we learn nothing else from this crisis, it is that the failure to protect consumers can cause the collapse of our largest financial institutions, the loss of hundreds of thousands of jobs, and the draining of hundreds of billions of dollars of wealth from hardworking Americans.
Tags: Treasury Department | Congress | economy | Senate | Chris Dodd | Wall Street | Henry Paulson | government intervention
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Fannie Mae
ROFL.
Dodd didn't seem to mind it a bit (that is CEOs laying billions of dollars of risk on taxpayers' backs) when the CEO was Franklin Reins at FNMA. That would explain why Dodd is #1 on the list of FNMA campaign contributions (http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html). Oh, and look who is #2 (despite only being in for 4 of the 10 years counted) the one who will save us from all this mess - Barack Obama. (that's sarcasm for the DailyKos fans)
The Root Of The Problem???
Caveat Emptor - Let the buyer beware. End of story. It's all fun and good to jump down the throughts of the highly unregulated lenders, but somebody got the loan! Somebody decided to get a chunk of change, promised to pay a certain amount monthly for that chunk, and then for whatever reason was no longer able to pay. My whole life, through Republican and Democratic presidents, the American dream has been about home ownership. And remember that's where this conversation truely started almost 2yrs ago. Not with failed loans to overseas entities, but the forclosure upon joe six-pack home owner with a family. Remember the S&L's of the '80s? Our country had no problem pointing a stern finger at the shady millionares that gave bad loans to other millionares and cost the taxpayers billions. But we seem to forget what the subprime market was really all about. Helping people with less than, not perfect, but plain DECENT credit provide a home for their family. So, who has hurt the American taxpayer? THE AMERICAN TAX PAYER!!! Get the money in, and deal with the rest tomorrow. And don't insult the voters and taxpaying non-voters with sideline talks about the kind of leader the White House needs. Dodd is a Democrat. Hmm, I guess that means the beat cop he was talking about for the future is McCain? Probably not. This is America people. The nation as a whole means more that any one political party.
Out of Pocket
Then there is Jim Johnson, Obama's former advisor and head of Fannie Mae, on the take in the prime, and not so prime, mortgage industry -- Countrywide crooks:
http://www.illinoisattorneygeneral.gov/pressroom/2008_06/20080625.html
"Chicago – Attorney General Lisa Madigan today filed a lawsuit in Cook County Circuit Court against Countrywide, the nation’s largest mortgage lender and servicer. The complaint alleges that Countrywide Home Loans, Inc., and its parent company, Countrywide Financial Corporation, engaged in unfair and deceptive conduct on a large scale in creating, originating, marketing and servicing unnecessarily risky and costly mortgage loans for Illinois homeowners."
Senate BANKING Committee Chairman Chris Dodd received special rates in 2003 from Countrywide. He said he didn't know he was getting special treatment. In that case he is not qualified to give advice as chairman.
The ONLY action our government should be taking is to force the mortgage companies to accept reasonable mortgage payments, and forbid the forecloser's on any more properties.
To all the someones' who are all for acquiring the foreclosed upon homes, whether in government or the free market, you are thieves.
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